• Darling Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended:

  Actual units produced: 12,000

  Actual variable overhead incurred: $730,000

  Actual machine hours worked: 60,000

  Budgeted fixed overhead $72,000

  Planned level of machine-hour activity 50,000

  If Darling estimates four hours to manufacture a completed unit, the company's standard fixed overhead rate per machine hour would be:

  $12.00.

  $14.40.

  $14.60.

  $15.00.

  some other amount.